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This commentary reflects the investment opinions and views of Phronimos Investments and should be read in the context of our investment strategy, which is intended for Wholesale and Sophisticated investors only. Any views or opinions expressed here are not intended as investment advice and do not take your personal circumstances into account. We strive to be factually accurate, but we do make errors from time to time. We typically comment only on securities that we currently own and therefore our interests may diverge from yours. Our views may also change with the passage of time, due to changing circumstances and security prices, and we make no commitment to update any previously expressed views. Please conduct appropriate research or consult a financial advisor before taking any action based upon anything you might read here.
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investment resilience
The recent turmoil in some corners of the equity market and certain other asset classes has had virtually no impact on the value of our portfolio, which remains up just under 2% in 2026 to date. The Nasdaq is down nearly 5% over the past five trading sessions and since the beginning of the year the S&P500 Software sub-sector is down around 20% amid fears of AI disruption. S&P500 Software and Services Index - 2026 YTD Firms that rely on providing data and analytics, and which
Phronimos
Feb 52 min read
Fielmann: taking affordable, customer-centric optical retail global
Fielmann forged its affordable, customer-centric optical retail model in the crucible of Germany's frugal consumer. It now aims to take that approach global and the stock is not priced for Fielmann to succeed.
Phronimos
Jan 2824 min read
CarCrash
Investors willing to talk openly about their activities tend to do so in order to showcase their perceptive and analytical brilliance, either on current ideas or past investments that have proved particularly rewarding. This discussion is neither. This is our attempt to come to terms with a significant investment error and what to do about it. CarMax stock fell by a third in the 3rd quarter, with most of the falls occurring toward the end of September when the company posted
Phronimos
Dec 9, 20257 min read
a conversation with Guy Spier
At some point in his or her investing journey every aspiring Value investor will stumble upon Guy Spier's book, The Education of a Value...
Phronimos
Jul 28, 20251 min read
Iran, and the inception of ideas
The events in the Middle East dominated the headlines in June, culminating in America’s surprise assault on Iran’s nuclear facilities....
Phronimos
Jul 5, 20253 min read
the greatest investor of all time, calls time
It was an historic day in Omaha. This analyst had the privilege of attending the annual meeting of Berkshire Hathaway at which Warren...
Phronimos
May 7, 20256 min read
growth and return on capital
With one or two exceptions most of our holdings consist of medium and smaller-sized companies that investors have ignored in their...
Phronimos
Oct 6, 20243 min read
quality investing and the margin of safety
We are adherents of the Munger school that argues it is better to buy an outstanding business at a sensible price, than a mediocre...
Phronimos
Apr 4, 20244 min read
the immaculate devaluation
One of our larger investments is in Nigeria. You read that correctly: Nigeria – a country that is utterly irrelevant to most global investors. Are we deeply worried, then, about the roughly 40% decline in the Naira in June? Yes, Nigeria’s currency is called the Naira, and No, we are not concerned. In fact it is something we have been waiting for now for a number of years. It is a giant step forward in the process of taking Nigeria out of the economic and financial markets dee
Phronimos
Jun 29, 202313 min read
scent: the industry of sex and hunger
We like businesses that cater to human needs and wants, through good times and bad, and we happened to find one this quarter trading at...
Phronimos
Apr 20, 20235 min read
Europe: crisis and opportunity
The situation in Europe has presented us with an opportunity to acquire shares in a business that we have admired for several years for a...
Phronimos
Oct 10, 20223 min read
Warner Brothers Discovery
It has been an inauspicious start for the newly formed media group Warner Brothers Discovery ('WBD'). From shortly after the completion of the merger on April 8 to the end of the quarter WBD's share price declined by nearly half to just over $13. At its low at the end of June the equity value of this media giant was a measly $32bn. That despite an estimated $50bn+ in revenue in its first full year as a combined business. Yes, the traditional pay-TV business is challenged and
Phronimos
Jul 27, 20225 min read
Investors are fearful. Are they fearful enough?
The year so far is shaping up to be quite challenging with key equity benchmarks down around 20% for the first half, and even worse for...
Phronimos
Jul 26, 20225 min read
Houses prices, rents and 'transitory' inflation
The market has caught up with our misgivings about inflation in recent months (and then some), and recent inflation readings have...
Phronimos
Aug 21, 20214 min read
the 1940’s called – it wants its policy settings back
Long term bond yields rose sharply in the first quarter, reflecting either expectations for faster economic growth, higher inflation, or both. Around half of the 0.8% increase in US 10-year yields appears to be related to inflation if judged by the increase in yields on Treasury Inflation Protected Securities (TIPS). This move higher in yields occurred in spite of the Fed’s continuing program of $120 billion per month in treasury and agency securities purchases, which act to
Phronimos
Apr 27, 20215 min read
concentration or leverage, but not both
During the March quarter we sold our remaining holdings of Discovery, prior to the sudden collapse in the share price in late March. We...
Phronimos
Apr 17, 20217 min read
paying up for cheap beer in Hanoi
About fifteen years ago my wife-to-be and I enjoyed a street-side beer in Hanoi that cost us 20 cents. A minor scooter mishap might have...
Phronimos
Jan 7, 20215 min read
the rising costs of cheap passive investing
It is undoubtedly true that for most investors investing via low-cost index funds is the best option to maximize long-term returns after...
Phronimos
Jan 7, 20216 min read
requiem for a jumbo jet
In the third quarter it was reported that Boeing will cease production of the iconic 747 ‘Jumbo Jet’ after the last few orders come off...
Phronimos
Oct 20, 202011 min read
the name is awful, but there is some sparkle to Stellantis
Peugeot reported an 85% decline in first half operating profit to EUR 482m. Net income fell 68% to EUR 595m. This is an incredible...
Phronimos
Jul 31, 20205 min read
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